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Grain futures lower; Soybeans drop amid demand concerns

Published 05/30/2013, 06:05 AM
Updated 05/30/2013, 06:05 AM
Investing.com - U.S. grain futures were lower on Thursday, with front-month soybean prices coming under pressure amid concerns over a slowdown in demand from top consumer China.

On the Chicago Mercantile Exchange, soybeans futures for July delivery traded at USD14.9550 a bushel, down 0.4% on the day.

The July contract fell by as much as 0.5% earlier in the session to hit a daily low of 14.9513 a bushel.

Soy prices extended losses from the previous session, when the U.S. Department of Agriculture said China cancelled sales of 147,000 tonnes of U.S. soybeans amid increasing competition from South American exporters.

China imports 60% of soybeans shipped around the world, with the bulk of its purchases coming from the U.S. and Brazil, the world's top exporters.

Losses were limited amid lingering concerns over U.S. crop prospects.

Nearly 44% of the U.S. soy crop was planted as of last week, significantly below the 87% planted in the same week a year earlier. The five-year average for this time of year is 61%.

Meanwhile, corn futures for July delivery traded at USD6.6488 a bushel, down 0.1% on the day. The July contract was stuck in a tight range between USD6.6313 a bushel, the daily low and a session high of USD6.6713 a bushel.

The front-month July corn contract rallied to hit a seven-week high of USD6.6937 a bushel on May 28 after the USDA said that 86% of the U.S. corn crop was planted as of last week.

Approximately 99% of the U.S. corn crop was planted in the same week a year earlier, while the five-year average for this time of the year is 90%.

Elsewhere on the CBOT, wheat for July delivery traded at USD6.9925 a bushel, down 0.4% on the day. The July contract traded in a range between USD6.9638 a bushel, the daily low and a session high of USD7.0225 a bushel.

Wheat futures remained supported amid concerns over U.S. crop prospects.

The USDA said that approximately 31% of the U.S. winter wheat crop was rated “good” to “excellent” as of last week, unchanged from the preceding week and below the 54% recorded in the same week a year earlier.

Winter-wheat crops in “very poor” to “poor” conditions rose to 42% from 41% in the preceding. Only 16% of the winter-wheat crop was rated “very poor” to “poor” in the same week a year earlier.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

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